Investment word of the day: A Certificate of Deposit (CD) is a financial instrument administered by the Reserve Bank of India, where interest is earned on an amount deposited for a specific time period. These short-term investment instruments are typically considered secure because the deposited amount is not subject to market volatility. Who issues a…
Mumbai: In a huge relief to the banking system, the Reserve Bank of India has allowed banks to set aside a lower stock of liquid assets against deposits raised through digital channels, in the event of a potential run on banks. In the final guidelines on liquidity coverage ratio (LCR) released on Monday, RBI said…
Mumbai: Deposit growth has been lagging advances lately, sparking a vigorous debate among bankers, including the RBI, over the reasons for this divergence and how to boost savings. On Thursday, the country’s top bankers differed sharply over what was causing the deposit-credit mismatch. Some of them blamed mutual funds, which fetched superior returns, and sought…
Mumbai: The Reserve Bank of India (RBI) on Monday said housing finance companies (HFCs) will need to have higher liquid assets to back deposits, and allowed these lenders to issue co-branded credit cards, in a move to put them at par with their non-bank financier counterparts. These mandates were first proposed in draft guidelines released…
Now the biggest culprit behind Bank Niftyâs underperformance has been its largest constituent by weightageâHDFC Bank. But even beyond this behemoth, Indian banks are currently grappling with some considerable systemic challenges, all of which were evident in their recent results. Dial D for Deposits When the countryâs largest private sector bank as well as the…
Finance minister Nirmala Sitharaman on Saturday urged banks to return to their core focus of deposit mobilization and lending, emphasizing the need to balance these two critical elements of the banking business. Addressing the media after attending the 609th meeting of the Reserve Bank of India’s central board of directors, Sitharaman likened deposits and lending…
Mumbai: In an effort to bring down its credit-deposit ratio to pre-merger levels and pursue profitable growth, HDFC Bank will grow its advances a âlittle slowerâ than deposits and avoid pursuing growth which does not meet the risk-adjusted profitability thresholds, according to MD and CEO Sashidhar Jagdishan. âOur focus would be to maintain adequate liquidity…
